One of the main hurdles standing in the way of widespread acceptance of reverse mortgages is their sheer complexity. One good example is the reverse mortgage interest rate. Most home owners, if asked the interest rate on their mortgage, could quickly and accurately answer – e.g. “We have a 30-year at 6.5%”. Even more complex…
Reverse Mortgages – Learn The Facts First!
Reverse Mortgages, Most Common Features: Many offer special appeal to older adults because the loan advances, which are not taxable, generally do not affect Social Security or Medicare benefits. Depending on the plan, reverse mortgages generally allow homeowners to retain title to their homes until they permanently move, sell their home, die, or reach the…
Reverse Mortgage Counselors – Michigan
Reverse Mortgage Tip If you’re planning to refinance your first mortgage, it may be best to hold off on getting a HELOC loan. Many mortgage companies look at the combined loan amounts when refinancing the first mortgage. If you plan on refinancing your first, check with your mortgage company to find out if getting a…
A Reverse Mortgage Could Provide a Comfortable Retirement
While only comprising about 1% of all mortgages, the reverse mortgage has gained in popularity in recent years. Federally insured since the late 1980′s, the reverse mortgage allows owners of paid-off homes of at least 62 years of age to borrow against the equity in their homes in the form of a lump sum, a…
Reverse Annuity Mortgage – Tapping Into Your Equity
Reverse annuity mortgages (RAM) were created to allow older Americans to tap into the equity of their paid for or nearly paid for home. Homeowners receive a tax-free payment each month, and the mortgage is paid when the home is sold. Before you choose a RAM, make sure you have evaluated the risks since this…
The Reality Retirement Calculator – assessing needed income for retirement
The foremost fear of anyone in (or approaching) retirement is that they will manage to outlive their savings. Projecting your needed income for retirement is a difficult task. It requires looking into the future for decades and matching anticipated needs with the resources you expect to have available. There are hundreds of internet retirement calculators…
AFR – Applicable Federal Rate
The applicable federal rate (AFR) is an interest rate published monthly by the U.S. Treasury (IRS) to calculate imputed interest charges. The AFR is the rate used by the IRS to determine interest charges, even when no interest has actually been charged. The AFRs for a particular month are generally made available during the third…
Advantages and Disadvantages Of A Reverse Mortgage
Betty and John are in their mid-seventies and are currently weighing the advantages and disadvantages of a reverse mortgage as a way of freeing up some cash. The couple purchased their home 45 years ago for about $14,000 since then home values have skyrocketed and recent single family homes in their neighborhood have been selling…
Met Life Predicts Surge in Reverse Mortgages
In a recently released study, Met Life predicts that the demand for reverse mortgages will grow: As for financing boomer housing in retirement, the use of reverse mortgages will become more prevalent, especially since boomers have invested heavily in their homes. Since, with reverse mortgages, both husband and wife (or domestic partners) can remain in…
Use a HELOC to Step Into a Reverse Mortgage
Reverse mortgages are financial tools specifically designed to help seniors tap their home equity for retirement income. But they have two big drawbacks: 1) fees and expenses in relation to loan amounts are very high and, 2) they are aged-based loans meaning that the younger the borrower, the smaller the loan amount available. You need…